Abstract
The objective of this study was to explore the cost feasibility of creating a fuel pellet manufacturing operation utilizing cotton gin by-products from a commercial gin processing 55,000 bales of cotton per year. An economic model was developed and evaluated in order to conservatively address the effects of key elements such as marketing, transportation, and manufacturing. The cost system model was developed and analyzed to examine the factors influencing the sensitivity of critical areas such as cost and profits. The cost system model simulated changes for 24 cost variables associated with the proposed fuel pellet operation. Results from the analysis indicate the probability of obtaining a 15% return on investment (ROI) varied depending on the mode of freight used to ship the product to any of the distribution hubs evaluated. If the product was shipped by truck, the ROI was 27.3%, or 49.1% when shipped by rail. Based upon the information contained in this study, it appears that a fuel pellet operation can be a viable means of utilizing cotton gin by-products to enhance revenue.
| Original language | English |
|---|---|
| Pages (from-to) | 423-430 |
| Number of pages | 8 |
| Journal | Applied Engineering in Agriculture |
| Volume | 20 |
| Issue number | 4 |
| State | Published - Jul 2004 |
Keywords
- COBY
- Economic analysis
- Energy
- Fuel pellet
- Gin trash
- Gin waste
- Pellet stove